by Renee Haltom – EconFocus, Federal Reserve Bank of Richmond
As the worst financial crisis in generations hit the United States in 2007 and 2008, Canada was a pillar of resilience. No Canadian financial institutions failed. There were no government bailouts of insolvent firms (just a couple of lending programs to address market volatility relating to problems in the United States). Canada was the only G-7 country to avoid a financial crisis, and its recession was milder than those it experienced in the 1980s and early 1990s. For the last six years, the World Economic Forum has ranked Canada first among more than 140 countries in banking stability.